Africa’s ''Buy Now, Pay Later'' market poised to triple by 2031, report finds

Africa’s buy now, pay later (BNPL) market is set to grow from US$5.2 billion in 2025 to US$16.8 billion by 2031, according to a January 29, 2026 report by market research firm Research and Markets.

The report, titled “Africa Buy Now Pay Later Business and Investment Opportunities Databook,” said the segment posted an average annual growth rate of 30.5 percent between 2022 and 2025, with projected growth of 20.7 percent per year from 2026 to 2031.

BNPL remains a fragmented credit segment across Africa, increasingly shaped by e-commerce platforms, mobile payment ecosystems, and specialized fintechs, while regulators are gradually tightening oversight.

Regional dynamics and adoption drivers

South Africa, Kenya, Nigeria, and Egypt account for most BNPL activity, each with distinct competitive environments.

In South Africa, BNPL is integrated into established e-commerce networks and physical retailers, with platforms like Payflex reporting growing adoption, especially in fashion and electronics.
In Kenya and Nigeria, mobile money services and super apps drive adoption, allowing customers to access installment payments for goods and services seamlessly. Notable players include Lipa Later, Faraja/EDOMx (Kenya), CredPal (Nigeria), and valU (Egypt).
E-commerce platforms such as Jumia have partnered with BNPL providers to integrate installment payments at checkout. For instance, in Nigeria, Jumia collaborated with Easybuy and CredPal in May 2024, letting customers spread payments while merchants receive funds immediately.

Mobile money-based BNPL models, such as M-PESA Faraja, are expanding access for offline merchants. Telecom operators are also leveraging large customer bases to offer BNPL products for everyday spending, smartphones, telecom services, and off-grid solar systems.

Regulatory shifts favor larger, well-capitalized players

African regulators are extending consumer credit frameworks to cover BNPL, emphasizing licensing, disclosure, and financial inclusion. Providers are increasingly subject to rules on creditworthiness assessments, standardized disclosures, complaint handling, and data-sharing obligations.

In Kenya, BNPL and digital lenders must obtain a Central Bank license.
In Nigeria, compliance is required under the Federal Competition and Consumer Protection Commission rules for digital lending.
In Egypt, BNPL providers are licensed by the Financial Regulatory Authority.

These tighter rules are raising entry barriers and compliance costs, favoring well-capitalized fintechs and bank-backed models, while smaller players may consolidate, exit, or pivot toward technology-service roles. Analysts expect this to result in fewer licensed providers, clearer risk controls, and deeper partnerships with banks, insurers, and credit bureaus.

Market expansion into new sectors

BNPL providers are increasingly targeting high-potential sectors like education and healthcare, aiming to differentiate themselves in less crowded niches. Banks, credit card providers, and some e-commerce platforms are entering the market primarily through partnerships rather than proprietary solutions, reflecting a trend toward collaboration over standalone ventures.

The report highlights that Africa’s BNPL ecosystem is at a pivotal stage, combining strong consumer demand, digital payment adoption, and regulatory oversight, setting the stage for a tripling of market size over the next five years.